FxWirePro- CADJPY Trade Idea

CAD/JPY  showed a minor pullback after Canadian CPI data. It hit a high of 104 and is currently trading around 103.98

In April, Canada's year-over-year CPI inflation eased to 1.7%, driven by a steep decline in energy prices, and month-over-month CPI declined modestly less than expected. Underlying measures of inflation, including core, median, trimmed, and common CPI, all increased year-over-year, indicating persistent inflation pressures in the Canadian economy despite moderation in headline inflation.

Technical Analysis

CAD/JPY is currently trading below the 34- and 55-EMA on the 4-hour chart. The immediate resistance is at 104.50; a breach above this level could shift targets to 105/105.51/106/107/108.25. On the lower side, near-term support is at 103.50 and a break below this support could lead to declines toward 103/102.50/10.65/101/100.

Indicator Trends

 CCI (50)- Bearish

ADX (14)-  Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 104 with a stop-loss at 105 and a target price of 100.